Our neighbor still has no water as of today, he can reset the pump and make it work for a short period of time, enough to flush toilets and such, but the water coming through is still not clear. We went into town to get some groceries and picked up 4 gallons of drinking water, a couple for us and a couple for our neighbor. On the way back, we pulled in behind the local well guy, what a great guy coming out on a Sunday to repair the well! Andy Prude is his name, and if you have well trouble in this part of the country, I highly recommend him! Anyhoo, we followed him to our neighbor's house. They are outside right now checking the well, it may be that there is a hole in the pvc pipe that goes down the well, if that is the problem, then it will be much less expensive to repair, it would explain all the muddy water coming through and the fact that the water keeps draining out of the system.
I'll post an update as things happen.